What is Medical Payments Coverage?

This article is part of a series designed to Let America Know more about their insurance coverage and insurance coverage options.  We have already discussed the benefits of Uninsured/Underinsured (UM/UIM) coverage and why everyone should have it.  We have also discussed Gap Insurance and Liability Insurance.  This month, we will discuss the benefits of medical payments coverage.

Medical payment coverage is an option for car insurance policies that protects the insured, their family, and permissive users of the covered automobile from medical bills that result from a car accident. Regardless of who is at fault in the car accident, medical payment coverage will cover the insured and their family for the policy amount in regards to medical bills. Medical payment coverage also covers the insured and their family in the event of being struck by a vehicle while walking, jogging, and running, etc. Medical payment coverage can be a useful policy option, but do you really need it?

Medical bills can be costly and medical payment coverage can help with those bills.  Medical payment coverage covers any medical payments up to the insurance policy limit for injury or funeral expenses that are related to an auto accident.  However, it is important to note that if you have health insurance, this medical payment coverage can be excess coverage that is unnecessary except in the most dire of circumstances.  Health insurance providers often cover a majority of medical expenses, therefore it is important for you to review your current healthcare coverage before purchasing medical payment coverage.  Medical payment coverage is most cost effective when you do not have health insurance.  However, it can still be beneficial if you do have health insurance because it can be used to cover co-pays that your health insurance does not cover for you.  In the event you are in an accident and have both health insurance and medpay coverage, the key is to make sure your health insurance pays its share of the bills first which then allows your medpay coverage to cover your co-pays rather than the medical bills that would have been paid by your health insurance.  This method will allow you to get the most out of your insurance coverage and not have to spend money out of your pocket on co-pays.

In short, medical payment coverage is a useful tool in the right circumstances.  In comparison to UM/UIM coverage, medical payment coverage is not nearly as important, especially if you have health insurance.  Hopefully this article lets you know a little bit more about your insurance coverage.